The members of the Nuhuen Pullu communal bank have different businesses such as pastries, jewelry sales, cream sales, and barber shops. Marcela, to the right of the photo, wearing a red jacket, has a grocery store that she started two years ago. She decided to do this because it was impossible for her to work outside the home with her young son. The problem she has always had is not having enough money to be able to cover all expenses and buy more inventory for her business, although her family has always been very supportive.

The money from this loan will allow her to buy more merchandise and she will save the rest for any unplanned needs that may occur. She is very happy because she knows that she will have a good period if she receives this money. She is excited because she will be able to renovate and come up with new ways to attract more customers. What she enjoys most about working with Fondo Esperanza is the work with the group because she joined a bank with her neighbors and they all know one another, which makes this experience more satisfying and fun.

Additional Information

More information about this loan

This loan targets populations in financially underserved regions of Chile. Thanks to its numerous branches, Fondo Esperanza is present nationwide and offers loans to micro-entrepreneurs in a country known for its limited microfinance industry. This Kiva loan enables entrepreneurs to maintain their current businesses in areas where Fondo Esperanza is the only available and accessible financial institution.

About Fondo Esperanza

Fondo Esperanza (FE) is a private non-profit organization that supports entrepreneurship by providing micro-credit and training to people living in poverty in well over 100 cities throughout Chile. By providing these services, FE aims to improve the living conditions of the entrepreneurs and their families. In 2010, FE provided loans to more than 41,000 entrepreneurs. It utilizes a communal banking model in which groups of 18 to 25 clients meet on regularly and guarantee each other’s loans. The members use their portion of the loan to create or expand their own businesses. In the group meetings, clients receive training though the FE Entrepreneurship School, which enhances clients’ personal and business skills and ability to work in groups.

This is a Group Loan

In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.

Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.